US-China trade war fears shaking up more than just Wall Street

(FOX News) - Concerns over the economic impact of a potential trade war with China are rising, causing jitters on Wall Street and buffeted the markets Friday, with the Dow diving more than 700 points before paring losses and closing down 572 points.

Although the implementation of tariffs is still some time away, futures markets and the stock market have felt the effects. Even if the potential for a trade war is simply bluster, by spooking investors, it could have a further effect on the growth of the American economy - and not just on Wall Street.

"I think the impact on Main Street is going to be seen over the long term ... I think we at the Federal Reserve are paying attention but it's too soon for any of us to judge and none of us knows how to weigh the probability of these different outcomes," Minneapolis Federal Reserve President Neel Kashkari told Neil Cavuto during an interview on Saturday.

And while some American business executives have begun to worry about how a possible trade war with China could affect inflation, leaders at the Fed have not fully engaged in the tariff battle just yet. In a speech at the Economic Club of Chicago on Friday, Fed chair Jerome Powell said it was "too early to say" what the result of a trade war would be on the U.S. economic outlook.

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